Question
Harrison's company bond is currently selling for 94% of par. The bond is a semi-annual, 30-year bond issued 9 years ago with a face value
Harrison's company bond is currently selling for 94% of par. The bond is a semi-annual, 30-year bond issued 9 years ago with a face value of $1000 with a coupon of 8%. If the company's corporate tax rate is 32%, what is the after-tax cost of debt?
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
